Chap 11 Test bank PDF

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Chap 11 Test bank...

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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Mind and Body Fitness recently entered into a financial agreement that allows 25 independent business people at select locations across the country to set up establishments that offer its holistic services and programs. They include weight-management, group programming, sport-specific training, yoga, Pilates, and nutrition. Which type of contractual retail association does this represent? A) retailer cooperative B) independent retailer C) franchise organization D) corporate chain E) voluntary chain

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2) Which of the following is an impact of the Great Recession on retailing trends? A) lower costs for retailers B) economic shift toward higher prices C) tighter consumer spending patterns D) longer retail life cycles E) prohibition on new retail forms

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3) Which of the following statements is true of retailing? A) Services like hotels, banks, airlines, restaurants, colleges, and hospitals can be retailed. B) A feature common to all types of retail stores is the use of the everyday low pricing strategy. C) A department store has a narrow product line with a deep assortment. D) The largest type of retail outlet is a supermarket. E) All retail stores are full-service retail stores.

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4) ________ includes all the activities involved in selling goods and services to those buying them for resale or business use. A) Franchising B) Wholesaling C) Sole sourcing D) Showrooming E) Crowdsourcing

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5) Which of the following channel functions of wholesalers is demonstrated when a buyer receives quicker delivery because wholesalers are located closer than are producers? A) transportation B) buying and assortment building C) warehousing D) financing E) risk bearing

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6) Solutions Inc. negotiates the sale of materials between lumberyards and commercial construction companies, receiving a 15 percent commission on all transactions. Solutions Inc. is considered a ________. A) broker B) manufacturer C) supplier D) distributor E) retailer

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7) Walmart, Loblaws, Canadian Tire, and other major retailers offer handy ________ that pull customers to both their websites and stores. A) platforms B) mobile apps C) channels D) in-store shopping experiences E) product information

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8) Omni -channel retailers are those who ________. A) conduct all business activities online B) use mobile apps to sell their products C) expand their businesses internationally D) successfully merge the virtual and physical worlds E) sell products through third-party retailers

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9) Which wholesaler channel function is demonstrated when a wholesaler's sales force helps a manufacturer reach many small customers at a low cost? A) warehousing B) bulk breaking C) buying and assortment building D) risk bearing E) selling and promoting

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10) Which type of retailer typically carries deep product assortments of narrow product lines? A) specialty stores B) self-service retailers C) factory outlets D) warehouse clubs E) discount stores

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11) A ________ contains between 15 and 50 retail stores, including a department or variety store, a supermarket, specialty stores, professional offices, and sometimes a bank. A) community shopping centre B) neighbourhood shopping centre C) warehouse club D) regional shopping mall E) superstore

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12) Bulk Barn is Canada's largest bulk food distributor with over 275 stores across Canada. The primary role of the staff is to restock shelves and operate cash registers. Customers locate, compare, and select their groceries and other sundry items. Bulk Barn is most likely a ________. A) supermarket B) category killer C) full-service retailer D) self-service retailer E) pop-up store

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13) Aristocrat Bows N Ties, a Toronto necktie retailer, offers a deep assortment of men's neckties. This company is best described as a(n) ________. A) specialty store B) off-price retailer C) supermarket D) discount store E) department store

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14) ________ are the largest group of wholesalers and can be divided into two broad types of wholesalers: full -service and limited-service. A) Manufacturers' agents B) Agent wholesalers C) Retailers D) Merchant wholesalers E) Brokers

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15) ________ refer to two or more outlets that are commonly owned and controlled. A) Specialty stores B) Warehouse clubs C) Factory stores D) Designer shops E) Corporate chains

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16) Charging higher prices on an everyday basis, coupled with frequent sales and other price promotions to increase store traffic, create a low-price image, or attract customers who will buy other goods at full prices is referred to as ________ pricing. A) everyday low B) discount C) high-low D) category killer E) predatory

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17) Power centres are characterized by the ________. A) provision of individual entrances to each store B) absence of any pricing strategies for differentiation C) provision for nonretail activities, such as playgrounds D) sale of exclusive brands only E) lack of an anchor store

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18) Wayne Wholesaling fulfills many channel functions for its customers. The company mainly focuses on helping retailers to train their salespeople, improve store layouts, and set up inventory control systems. Based on this description, which channel function is provided by Wayne Wholesaling? A) management services and advice B) risk bearing services C) selling and promoting D) market information services E) buying and assortment building

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19) Which term refers to a giant specialty store with a very deep assortment of a particular product line? A) factory outlet B) category killer C) department store D) independent store E) convenience store

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20) A convenience store ________. A) markets to segments comprised mostly of white -collar workers B) involves high operation costs due to full-service customer assistance C) is a multi-channel food and discount retailer that targets niche markets D) stocks narrow product lines that have wide, deep assortments E) carries a limited line of high-turnover goods for consumer self-service

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21) An off-price retailing operation that is owned and operated by a manufacturer and normally carries the manufacturer's surplus, discontinued, or irregular goods is called a ________. A) specialty store B) superstore C) warehouse club D) factory outlet E) category killer

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22) Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retail store that is owned and operated by a famous brand. The company utilizes this store to sell its surplus, discontinued, or irregular goods at significantly lower costs. The retail store is best referred to as a ________. A) factory outlet B) superstore C) category killer D) power centre E) specialty store

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23) Which of the following statements is true of shopping centres? A) Shopping centres typically contain only those stores that target a niche market segment of high income groups. B) Shopping centres are groups of retail businesses built on a site that is planned, developed, owned, and managed as a unit. C) Most shopping centres function at the regional level rather than at the neighbourhood level. D) Shopping centres are huge superstores that offer a deep assortment of a particular product line. E) Shopping centres usually contain exclusive brands and specialty stores rather than convenience stores or department stores.

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24) As with other types of marketers, a primary goal in wholesaling is to ________. A) establish a greater number of locations B) hold prices constant C) match competitors' strategies D) build value -adding customer relationships E) maintain the status quo

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25) A ________ refers to a group of retail businesses built on a site that is planned, developed, owned, and managed as a unit. A) warehouse B) pop-up store C) category killer D) shopping centre E) convenience store

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26) ________ creates a seamless cross-channel buying experience that integrates in-store, online, and mobile shopping. A) Consolidation marketing B) Test marketing C) Shopper marketing D) Online marketing E) Omni -channel retailing

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27) JP Wholesalers is one of the largest wholesalers of wooden furnishings in the country. Recently, the company opened a chain of stores called JP Designer Homes that has become popular due to the good reputation the company has as a wholesaler. The company has now started acquiring smaller retail chains and consolidating its position in the market. Which of the following trends is reflected in this scenario? A) the decline of the voluntary chain distribution method B) the blurring of distinctions between retailers and wholesalers C) the shift toward self-service retailing D) the rise of franchise organizations and joint partnerships E) the decline of superstores and megastores

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28) ________ represent buyers or sellers on a more permanent basis than brokers. A) Distributors B) Manufacturers C) Retailers D) Franchisees E) Agents

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29) Retailers must decide on three major product variables: product assortment, services mix, and ________. A) store atmosphere B) self-service offerings C) store ambience D) store layout E) store location

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30) ________ focuses the entire marketing process—from product and brand development to logistics, promotion, and merchandising—toward turning shoppers into buyers as they move along toward the point of sale. A) Test marketing B) Shopper marketing C) Sole sourcing D) Internal marketing E) Warehousing

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31) C & G Retail, a chain of local supermarkets, procures all its goods directly from the producers' factories. This type of wholesaling is usually done in ________. A) manufacturers' offices B) value -retail centres C) corporate broker branches D) factory outlet malls E) warehouse clubs

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32) Retail convergence most likely leads to ________. A) reduced advertising costs B) reduced competition C) increased sales D) reduced differentiation E) increased profit margins

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33) Omni -channel retailing includes all of the following except ________. A) increasing in-store shopping channels B) cross-shopping on mobile devices C) integrating available shopping channels D) boosting online selling options E) omitting digital selling options

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34) Department stores are most likely characterized by ________. A) narrow product lines B) wide varieties of product lines C) predatory pricing strategies D) specialty goods and services E) deep assortments of luxury brands

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35) Hamilton Wholesaling, an electronics wholesaling firm, provides many services to customers including buying, storing, and transporting expensive and delicate electronics equipment. Hamilton takes title of ownership to all goods that the firm handles. Hamilton is most likely a(n) ________. A) agent wholesaler B) manufacturer's representative C) manufacturer's agent D) merchant wholesaler E) wholesaling broker

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36) Winners is a retailer that buys clothing and home products from a variety of brand name manufacturers at less -than-regular wholesale prices and then charges customers less than retail. Winners is an example of a(n) ________. A) category killer B) full-service retailer C) specialty retailer D) independent off-price retailer E) departmental retailer

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37) The Hudson's Bay Company (The Bay), a major retail chain across Canada, offers a wide range of consumer goods such as clothing, furniture, home appliances, cosmetics, and jewellery. The Bay is best described as a ________. A) specialty store B) pop-up store C) supermarket D) category killer E) department store

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38) Foot Locker has mastered online and mobile efforts that link seamlessly with store operations, offering options such as "buy online, ship from store" and "buy online, reserve in store" for pickup. This is an example of ________. A) omni-channel retailing B) web-based retailing C) in-store ordering with a mobile device D) social media E) digital retailing

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39) A group of independent retailers that bands together to set up a jointly owned, central wholesale operation and conduct joint merchandising and promotion efforts is referred to as a ________. A) retailer cooperative B) voluntary chain C) corporate chain D) factory outlet mall E) warehouse club

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40) Specialty stores are characterized by ________. A) a wide range of products and categories B) the sale of convenience and staple items C) low prices on a wide range of goods D) routinely purchased food products and services E) narrow product lines with deep assortments

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41) When compared to merchant wholesalers, brokers and agents ________. A) perform more extensive functions B) deal only in services and not products C) rarely specialize in one product category or customer type D) do not engage in any negotiation of wholesale deals E) do not take title to goods

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42) Office Solutions is a large retailer that specializes in office products and services. Their offerings include a wide and deep assortment of computers, desk furniture, printers, office supplies, stationery, and printing. Office Solutions is most likely an example of a ________. A) pop-up store B) convenience store C) category killer D) lifestyle centre E) supermarket

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43) A ________ is a small open-air mall with upscale stores, convenient locations, and nonretail activities such as a playground, hotel, dining establishments, and a movie theater. A) lifestyle centre B) power centre C) community shopping centre D) warehouse club E) regional shopping centre

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44) Stores that provide moderate sales assistance because they carry shopping goods about which customers need a moderate level of information are called ________ retailers. A) self-service B) full-service C) off-price D) convenience E) limited-service

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45) Compared to companies that employ Every day low pricing (EDLP), the Hudson's Bay Company (The Bay) carries a wide range of product lines, including clothing, jewellery, kitchenware, and home furnishings. The Bay typically charges higher prices on an everyday basis and then holds frequent sales and price promotions to increase store traffic. The Bay most likely uses ________. A) franchise retailing B) self-service retailing C) high-low pricing D) everyday low pricing E) experiential retailing

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46) Which contractual system is distinguished by the fact that it is normally based on some unique product or service; method of doing business; or trade name, goodwill, or patent that has been developed? A) corporate chain B) franchise C) warehouse club D) voluntary chain E) retailer cooperative

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47) Which of the following is true about trends in wholesaling? A) Merchant wholesalers are decreasing in number and relevance. B) The demand for lower prices and higher quality has increased. C) Bulk breaking is increasingly popular and necessary. D) New laws prevent wholesalers from having their own retailing operations. E) Value -added customer relationships have been replaced by control systems.

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48) Which of the following plays the most important role in omni-channel retailing? A) Social media B) Advertising C) Discounts D) In-store promotions E) Daily alerts

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49) Campbell is one of the oldest retailers in the country. While the service offered at Campbell is fairly mediocre, the retailer is famous for its surprise offerings of seconds, overstocks, and closeouts — occasionally including expensive gadgets and jewellery. Posco, a new chain of retail stores, offers products that are similar to Campbell's offerings; however, Posco is known for encouraging customers to ask questions and for providing service representatives to assist customers in the purchasing decision process. From this scenario, which of the following statements is most likely true? A) Posco's product assortment helps differentiate it from Campbell. B) Posco better utilizes the services mix to differentiate itself from Campbell. C) Posco fails to differentiate itself from Campbell through the services mix. D) Campbell has not been able to differentiate itself on the basis of product assortment. E) Both Campbell and Posco fail to identify the needs and wants of target markets.

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50) Leading "big-box" stores, such as Walmart and Home Depot, now dominate the retail scene. However, even "small -box" stores like Dollarama, are thriving in the current economic environment. All three retailers are considered ________. A) specialty stores B) convenience stores C) full-service retailers D) designer shops E) discount stores

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51) Customers at Carat, a premium jewellery store, are encouraged to make an appointment before a visit so that a customer service representative is assigned to them. These representatives help every customer make a purchase that meets his or her needs and budget after considering numerous options. The different styles and special features of the jewellery are explained to each customer to aid the purchase decision. In this case, Carat is an example of a(n) ________. A) self-service retailer B) off-price retailer C) supermarket D) full-service retailer E) convenience store

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52) Electronics Storage is a wholesaler that holds inventories, thereby reducing carrying costs and risks for both suppliers and customers. Which channel function does Electronics Storage primarily provide? A) transporting B) showrooming C) financing D) warehousing E) assortment building

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53) According to the text, today's large and progressive wholesalers have successfully reacted to rising costs by ________. A) increasing customer service responsibilities B) relocating to low-rent, low-tax areas C) reducing promotional and personal selling activities D) investing in information technology systems E) eliminating the need for brokers and agents

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54) Which of the following is a type of off-price retailer? A) discount store B) full-service retailer C) specialty store D) supermarket E) warehouse club

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55) Rotanna's, a leading fashion brand, sets up small temporary boutiques across numerous locations during its year-end sale, promoting its outdated products at half the price. These temporary boutiques are referred to as ________. A) pop-up stores B) shopping centres C) power centres D) category killers E) franchises

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56) Bikers and non-bikers alike enjoy dining at the Harley Davidson Café in Las Vegas. Several Harley Davidson models are on display as well as a very large, uniquely crafted American flag. Menu items include the Easy Rider, the Choppers Cobb salad, and the Harley Hog sandwich. The Harley Davidson Café most likely uses ________. A) self-service retailing B) franchising C) everyday low pricing D) predatory pricing E) experiential retailing

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57) Wholesalers most likely discourage less -profitable customers by ________. A) carrying exclusive product lines B) overseeing inventory control systems C) ...